Get Wise About Your Credit Matters

Svonne Underwood, The Credit Lady, has the answers to your questions

Dear Credit Lady:
I’ve read all of your articles and I’m trying to implement the Wise Tips from your articles.  I wonder how long it will take me to improve my credit score if my scores are low mostly because of maxed out credit cards.
Maxed out Jill

svonneunderwoodfile.jpgDear Jill,
If you have a $5,000 balance on a credit card and you make a payment of $3,000 your score should increase in 45 to 60 days. If you’re applying for a home loan your loan officer can do a rapid rescore and it could take less than 30 days. If you have late payments and collections your score will not increase as much or will increase only slightly.
The FICO scoring formula simply looks at credit card balances as of the time the score is being calculated and not at the history of your balances; therefore, paying as much of the balance as quickly as possible will have the most positive impact to your score in the shortest amount of time.
How quickly a FICO score rises as you begin to re-establish your credit depends largely on the reasons that made it low, as well as what specifically you’re now doing “right”. For example, a low score due to a history of late payments can take longer to recover from than a low score due to high credit card utilization if those balances are brought down within a relatively short period of time. So, while making timely minimum payments on credit card accounts is a good way to re-establish your credit, paying more than the minimum each month will have even more of a positive impact on your score.
Thank you for supporting me at the Black Expo in Oakland. I enjoyed meeting everyone and giving out Wise Credit Tips.
Please forward your questions to
Call (800) 896-2261 for a Certified Credit Specialist – Svonne Underwood The Credit Lady.
Visit Our Site at